Teaching Our Kids to be Smart With Money

“Your room is a mess!” I complained as I tiptoed through my daughters’ room one morning after waking her up. “Where did we get all this stuff?”

When I first started to have children, I thought we could be more mindful about the number of toys and items that collected in our home. Unfortunately, I was wrong. As the birthday gifts and Christmas presents mounted in their rooms alongside the surprises that mom and dad would buy “just because” the mess soon became overwhelming. It did little for their appreciation of things. I often found broken toys discarded on the floor and hidden in the corners. I sensed an attitude of entitlement creeping in.

Teaching our kids about money should go beyond being able to identify different coins and bills. It also needs to instill in them an appreciation for money and a solid understanding of how best to use it.

One of the important elements of training our kids is to reinforce their need to earn their own money.  Putting a price on the chores they do does not mean they get paid for every effort they make. Rather, kids also need to learn to help out because they are part of the family. While you want to reinforce this distinction, you can still make a list of a few chores that you need done and how much they will earn once they’ve completed their list.

If they decide not to do the work, get creative with the consequences. Maybe “hire” a sibling to do it? Seeing their brother or sister paid their allowance for the job may be what it takes to motivate your child to take their chores seriously next time.

Another consideration when we teach our kids about money is to have them learn about giving. Some experts recommend an envelope system. That is, have them divide their earnings into three envelopes: Giving, Spending, and Saving. This will teach them the importance of giving by getting them to tithe their own earnings. This is a more effective lesson than if you simply give them some money for the offering.  It also helps them take the idea of saving to heart. Saving some of our earnings is the essential way to helping secure a financial future. It is an important concept for kids to grasp. Consider having them save for a specific thing they’d like to buy.

Although teaching your kids about money may be the last thing on your mind these days, especially given the global pandemic we are in. But, with a healthy approach to money, our kids will be able to ride out whatever global difficulties come during their time. The funny thing is, when we feel at peace with our finances we are less likely to put money before God, which is what the Bible warns us against.  

Blessings,

Chandra Philip